The label is from a blue 8 GB iPhone 5c and carries a new part number of MG902 to go along with with the existing A1507 model number that is used on iPhone 5c devices sold in Europe and the Middle East for compatibility with cellular networks in those countries.

8GB is an insult to customers. 16GB barely cuts it when you're using the iPhone as it's supposed to be used (some music, some photos, some apps).

I know some people with an 8GB iPhone, and they're always running out of space. And these are light users, who only have a few apps and occasionally take a photo or two. I'd say 8GB devices are basically crippled out of the box.

The whole point is that Apple has spent years getting buyers used to (resigned to?) $100 differences between memory steps that cost a fraction of that, instead of allowing user upgradeable memory.

The same price step concept should work with less memory as well. Even though it only lowers the BOM by about $5, Apple could act like it lowers the retail price a lot more, thus keeping up appearances.

They could also use its limitations as a reason to sell monthly add-on cloud services.

My guess is that this device is intended as a gateway into Apple's ecosystem - a throwaway product that is sold for slightly less to entice people to get an iPhone where they may otherwise choose a feature phone or low-end Android phone.

Once its owner gets used to the device and starts to use it - and quickly runs out of space, they will be obliged to buy an upgraded model with more storage during the next product cycle.

Obviously shaving off half the (already paltry 16GB) storage doesn't save Apple a lot of money, but it allows them to target a new range of consumers with the latest devices. This isn't a product intended for those who know what they are getting and who want to use all the capabilities of an iPhone to its fullest.

Apple's products are great. But it's crap like this that actually makes me think they're retarded. I was hoping that the base model of the iPhone 6 would be 32 gb for the 200 dollar price point. Cuz it switched from 8 up to 16 a few years ago. How do you even justify selling an 8 gb phone in 2014!?!?!? Bad Apple.

The whole point is that Apple has spent years getting buyers used to (resigned to?) $100 differences between memory steps that cost a fraction of that, instead of allowing user upgradeable memory.

The same price step concept should work with less memory as well. Even though it only lowers the BOM by about $5, Apple could act like it lowers the retail price a lot more, thus keeping up appearances.

They could also use its limitations as a reason to sell monthly add-on cloud services.

Right on... The non-upgradeable memory is to force your money through Apples hands if you need more Mem. They are doing the exactly same thing across the Mac Lines. Being a long time Apple Fan, it has been years of disappointment as I watch Apple move to form over function and in cases like this, money grabbing.

This is what pisses me off about Apple. As stated above, I can buy a 32GB thumb drive for around $20 - maybe even less on sale - and Apple is still offering an 8GB iPhone...

Flash in thumb drives is not the same, it's much slower and cheaper. That said, I agree, Apple charges way too much for increases in memory. The iPhone 6 should be 199/249/299 for 32, 64, and 128. But sadly this is a good indication that it'll be the same as the 5S.

This is what pisses me off about Apple. As stated above, I can buy a 32GB thumb drive for around $20 - maybe even less on sale - and Apple is still offering an 8GB iPhone...

$19.99 is what my last SanDisk 32GB thumb drive cost. That was the NAND, connection piece, the plastic to hold it all together, and possibly whatever licensing fee the company paid for the privilege of using USB.

If this phone is free on contract, I can see the market for it. It would be perfect for my mom. She has a 16GB 4S that has no music, no videos, and hardly any apps or photos. I would imagine there are plenty of folks out there that are just like her.

Apple has stuck with the 8/16/32/64 GB range for far too long. While the markup at $100 for each increment may have been reasonable 5 years ago, the rapidly declining cost of flash storage has made the price markups unreasonable. Their profit on the markups goes up month by month while the consumer is getting little benefit.

Say what you will about the new PONO player, I am hoping that its 128GB storage will force apple to address the artificial 64GB cap they have put on their products.

Sure, it's not much, but I think that 8GB might just be right for me. If your music is on your iPod and you barely play any games or have any photos, there's really not much space to be needed. I currently have 32GB, but I don't really use it. I'd go with 8GB if the price is low enough (might get very low in the secondhand market!).